{"id":7969,"date":"2019-03-18T14:41:00","date_gmt":"2019-03-18T14:41:00","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=7969"},"modified":"2022-02-26T13:07:21","modified_gmt":"2022-02-26T13:07:21","slug":"remembering-the-beginning-of-this-bull-market","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/remembering-the-beginning-of-this-bull-market\/","title":{"rendered":"Remembering the beginning of this bull market"},"content":{"rendered":"\n<p><strong>The 10-Year Old Bull\nMarket <\/strong><\/p>\n\n\n\n<p>It\u2019s hard to\nbelieve that 10 years have passed since the end of the \u201cGreat Recession.\u201d But\nit was on March 9, 2009, that the 2008 bear market finally ended. For the\nsteely-nerved investors who were invested in equities at the time, and have\nremained in equities for the 10 years since the S&amp;P 500 has delivered a\nstout <strong>+17.8%<\/strong> <em>annualized <\/em>return. <\/p>\n\n\n\n<p>Patience,\nrewarded!<\/p>\n\n\n\n<p>Looking back\nat this recent history of bear and bull markets brings up a crucial point that\nI believe investors should keep front of mind \u2013 <em>patience is almost always rewarded<\/em>. <\/p>\n\n\n\n<p>When the\nmarket crashed in October of 1987, what was the S&amp;P 500\u2019s annualized return\n(including dividends) in the following 10 years? <strong>+17.2%<\/strong>. Following the bear market that ended in August 1982, what\nwas the S&amp;P 500\u2019s annualized return (including dividends) in the following\n10 years? <strong>+17.6%<\/strong>. And finally, after\nthe harsh bear market that ended in September 1974, the S&amp;P 500\u2019s\nannualized return for the next 10 years? <strong>+15.6%<\/strong>.<sup>1<\/sup><\/p>\n\n\n\n<p>________________________________________________________________________<br> <strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">Is a Bear Market Around the Corner? Get Zacks\u2019 View!<\/a><\/strong><\/p>\n\n\n\n<p>As we celebrate\nthe 10-year anniversary of the Bull Market, it is hard not to wonder <em>\u201cwhen will the next Bear arrive?\u201d<\/em> But if\nhistory has taught us anything, it is not to get caught up in trying to time\nthe market. <\/p>\n\n\n\n<p>Instead, the\nkey in my view is to stay focused on the fundamentals \u2013 economic data releases,\nearnings reports, and other economic factors! To help you do this, we are offering\nall readers a look into our just-released April 2019 Stock Market Outlook\nreport.<\/p>\n\n\n\n<p>This report\nwill provide you with our forecasts along with additional factors to consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Will\n2019 stay bullish or is a bear around the corner?<\/li><li>Zacks\nglobal markets\u2019 outlook<\/li><li>What\nsectors show the best opportunity?<\/li><li>What\nindustries within those sectors most merit your attention?<\/li><li>Forecast\nfor the S&amp;P<\/li><li>Small-cap\nvs. large-cap returns<\/li><li>And\nmuch more. <\/li><\/ul>\n\n\n\n<p>If you have\n$500,000 or more to invest and want to learn more about these forecasts, click\non the link below to get your free report today!<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">IT&#8217;S FREE. Download the Just-Released April 2019 Stock Market Outlook<\/a><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">2<\/a><\/sup><\/strong><\/p>\n\n\n\n<p>________________________________________________________________________<br>\n<br>\nIf there is\none lesson\/takeaway we can apply to big bear markets in hindsight, it\u2019s that\nsome of the stock market\u2019s brightest days \u2013 and best returns \u2013 have often\nfollowed the darkest days. Indeed, just when pessimism and doubt are running at\ntheir highest levels, that is just the time when the economy and stock market <em>can and have<\/em> recovered historically, in\nmy view. The challenge for investors is to understand and acknowledge the power,\nand reality, of this \u201810-year recovery\u2019 <em>before\nit happens<\/em> \u2013 as opposed to being on the sidelines while it\u2019s happening. &nbsp;<\/p>\n\n\n\n<p>Reflecting\nback on the 2008 Global Financial Crisis, I empathize with the true difficulty\nof remaining patient and strong-willed in the face of what seemed at the time\nlike total economic destruction and chaos. In the throes of the crisis, the\nS&amp;P 500 fell by -28% in just 22 days, and the index ended up losing more\nthan half its value through the trough of the bear (March 2009). The\nunemployment rate in America went from around 5% in January 2008 to 9.8% in\nJanuary 2010. Millions of Americans lost their jobs and their homes, and the\nUnited States entered one of the deepest recessions we\u2019ve ever experienced. At\none point, GDP fell by -8.9% in a single quarter (Q4 2008), its worst decline\nin 50 years. Home mortgage defaults soared from 3.66% to 11.54%.<sup>3<\/sup>\nIt\u2019s easy to understand why some investors felt going to cash was the only\noption.<\/p>\n\n\n\n<p>But we know\ntoday that staying invested even in the most difficult of times would have\nushered an investor\u2019s net worth to new heights, given that the S&amp;P 500\npassed its 2007 all-time high only 6 years later, in 2013.<sup>4<\/sup> Fast\nforward to today, the market is far higher than it was in 2013. Patience\nrewarded yet again.<\/p>\n\n\n\n<p><strong>Bottom Line for Investors <\/strong><\/p>\n\n\n\n<p>Almost 11 years ago, on September 15, 2008, Lehman Brothers\nfiled for bankruptcy.<sup>5<\/sup> At the time, few investors, analysts, or\ninvestment professionals fully understood the extent of damage the Lehman event\nwould ultimately cause to the global economy. Today we understand the full\nthrust of the impact on jobs, the capital markets, and the livelihoods of many\nAmericans.<\/p>\n\n\n\n<p>Today, we\nknow the path the U.S. economy charted to recovery, with the unemployment rate\ncurrently near historic lows and the stock market near all-time highs. The\nbrightest days have often followed the darkest ones.<\/p>\n\n\n\n<p>Looking\nahead, I can say with confidence that I believe the United States and global\neconomy will experience another economic crisis in the future. I cannot say\nwhen or how severe that crisis will be, just that I strongly believe it will\noccur. <\/p>\n\n\n\n<p>But I also\nbelieve that the U.S. and global economy will recover, that the U.S. stock\nmarket will bounce back to reach new all-time highs, and that American workers\nwill live through it. That\u2019s why I believe that investors who remain patient\nand confident in the long-term strength of the U.S. economy \u2013 through good\ntimes and bad \u2013 stand the best chance of reaping the greatest long-term\nrewards.<\/p>\n\n\n\n<p>As we have historically seen time and time again, patience is rewarded. To help you stay focused on the long-term, I am offering all readers our <strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">Just-Released April 2019 Stock Market Outlook Report.<\/a><\/strong> <\/p>\n\n\n\n<p>This Special\nReport is packed with newly revised predictions that can help you base your\nnext investment move on hard data. For example, you&#8217;ll discover Zacks\u2019 view on:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Will\n2019 stay bullish?<\/li><li>Zacks\nglobal markets\u2019 outlook<\/li><li>What\nsectors show the best opportunity?<\/li><li>What\nindustries within those sectors most merit your attention?<\/li><li>Forecast\nfor the S&amp;P<\/li><li>Small-cap\nvs. large-cap returns<\/li><li>And\nmuch more. <\/li><\/ul>\n\n\n\n<p>If you have\n$500,000 or more to invest and want to learn more about these forecasts, click\non the link below to get your free report today! <\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">FREE Download \u2013 Zacks&#8217; April 2019 Stock Market Outlook<\/a><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\">6<\/a><\/sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-stock-market-outlook?source=website&amp;medium=blog&amp;term=motm_blog_2019_3-16&amp;content=stock_market_outlook_report\"> &gt;&gt;<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 10-Year Old Bull Market It\u2019s hard to believe that 10 years have passed since the end of the \u201cGreat [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71],"tags":[],"class_list":["post-7969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/7969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=7969"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/7969\/revisions"}],"predecessor-version":[{"id":10777,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/7969\/revisions\/10777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=7969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=7969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=7969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}